Also, Nextlink OKs new opportunity, Rogers Communications gets boost from broadband, Telenor's Q3 financials and Maine tacks a surcharge on landlines.
New Verizon Fios broadband and 5G fixed-wireless access broadband subscribers will get Disney+ services free for a year under a deal that also makes Verizon the exclusive wireless partner for the House of Mouse's new streaming service. With the service aimed at nostalgic millennials and Gen Zs, some intend to get the streaming service at no charge long after this deal expires. As one Gen Z told BBWN, "I've hated Disney since they bought Club Penguin and made it bad. I'll just pirate anything I want from them."
Positive or Negative Response to Disney+
In the deep pond of streaming choices, some prospective viewers are underwhelmed at the chance to purchase Disney+ content. No doubt parents of young children will disagree.
Northeast Oklahoma businesses and residents shortly will have a new high-speed Internet service provider option: Nextlink Internet is set to break ground on an office in Enid, the first step in its plan to bring fiber-optic network technologies and FWA to rural parts of Oklahoma. It's a strategy the operator successfully used in rural part of its home state of Texas and now is expanding into Illinois, Iowa, Kansas, Nebraska and Oklahoma.
Rogers Communications announced third-quarter total revenue of $3.75 billion (Canadian) (US$2.87 billion), down 1% year-over-year from C$3.77 billion (US$2.88 billion), despite a 7% increase in broadband revenue and 1% growth in cable revenue. In the quarter, Rogers' cable revenue was C$994 million (US$760 million), versus C$983 million (US$752 million) in Q3 2018. Consolidated adjusted EBITDA increased 6% and adjusted EBITDA margin expanded 260 basis points. Cable adjusted EBITDA increased by 2% this quarter, and cable margin reached 50.2% this quarter, up 40 basis points from last year.
Telenor reported Q3 earnings of 12.09 Norwegian kroner ($1.32 billion), down 7.3% from the 12 months prior, for its organic earnings before interest, tax, depreciation and amortization (EBITDA). Revenue grew 0.1% to NOK29.53 billion ($3.22 billion). The quarter featured Telenor's finalization of its DNA acquisition. Because of this timing, DNA reported separately and its preliminary Q3 earnings showed its fixed-network subscription base -- broadband, cable TV and voice -- grew 6.7% to 1.225 million subscriptions (from 1.148 million nine months prior). Net sales increased 3.7% to €699.7 million ($778.45 million) from €674.8 ($750.75 million) nine months earlier.
Beginning next year, Maine will levy a 10-cent surcharge on each of the state's (decreasing number of) landlines to finance its broadband service expansion, a tax that it expects to generate between $750,000 to $1.5 million. The ConnectME Authority will supervise the fund as it's turned into small grants to address un- and under-served areas. Currently, the fund gets about $1 million annually from a 0.25% assessment on customer bills for wired communication services like landline and VoIP phones, CentralMaine.com said. Over five years, ConnectME invested $6.4 million in rural broadband, helping fund 32 expansion projects that connected about 3,000 premises.
It wasn't long ago that TV was ranked by subscribers as the most important service in the bundle provided by their communications service provider (CSP). Recent research indicates that for nearly three quarters of subscribers, broadband is now the most important service. Broadcast TV is the most important service to only 15% of North American consumers, replaced by OTT video streaming platforms like Netflix, Amazon Prime and Disney+. In addition, many different competitors are moving aggressively to stake a claim in consumers' homes.
In 2020, CSPs need to fight back by transforming their business models, which are becoming more reliant on a single source of revenue: fixed broadband services.
This webinar will focus on helping CSPs transform their business models by placing a firm focus on delivering a sensational subscriber experience and by offering compelling new services that generate value for subscribers. These actions will reinforce the CSP's strategic position in the home network and position themselves for growth in the next decade.
Key topics include:
Being the first to market with WiFi 6 technology, in response to consumer purchases of new devices over the holidays;
Having the insights needed to proactively resolve issues, often before your subscribers even know that there are issues;
Providing help desk agents with the visibility they need to resolve common subscriber issues more quickly;
Delivering a mobile app, in response to consumer demands for the ability to do some things themselves, rather than having to call technical support; and
Addressing consumer concerns around device security, privacy and control with enhanced security and parental controls.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.